Nepal, one hundred days after the earthquake: Caritas helps, the IMF no

After the emergency, the reconstruction: while the aid of NGOs continues to rise, international institutions refuse partial remission of debt

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Pubblicato il
16/08/2015

Ultima modifica il 16/08/2015 alle ore 16:52

(Vatican Insider)

A hundred days after the earthquake in Nepal, it’s time for an initial assessment and a look at the future of the country: while NGOs such as Caritas have made a remarkable effort, there is still the indifference of the international financial institutions towards the difficult situation in the country. The International Monetary Fund has in fact officially rejected the request for amnesty, even partial, of the foreign debt of the Himalayan country.

Last April 25 an earthquake of magnitude 7.8 rocked Nepal, the worst in the history of the country. Two weeks later, a second quake caused further devastation.
The official count totaled 8900 dead, more than 600 thousand homes destroyed, and about 3 million people still victimized by the effects of the earthquake: loss of goods and property, loss of livelihood, and the inability to continue in education and normal social and economic activities.

The Nepalese government and international organizations related to the United Nations have launched the mechanisms of aid, while the world of NGOs has mobilized international solidarity. Among the most active organizations, Caritas Nepal, thanks to a partnership with the network of Caritas Internationalis, has provided - referenced in a note sent to Vatican Insider - 68 thousand accommodations to families in 15 districts with a total of 342 thousand people as recipients of humanitarian aid of various kinds: food, water, hygiene kits, and building materials.

Recounting the organization’s activities, Pius Perumana, Capuchin friar and Secretary General of Caritas Nepal, cites “the commitment of volunteers and regular coordination with the Nepalese government,” as well as the fruitful collaboration with Caritas in forty other countries. “Since one hundred days have elapsed after the disaster,” he says, “now we can begin to think about the long-term aid. The Nepalese people have demonstrated a spirit of cooperation and compassion: this expression of charity brings hope into shattered lives.”

“Our job is really to regenerate hope, not just offer a piece of bread,” said Michel Roy, Secretary General of Caritas Internationalis, returning from a recent mission to Nepal. “By creating a network, a virtuous circle is generated that develops more human and material resources,” he added.

Thus
Nepal is rising again, says Caritas, reporting encouraging results: Caritas has reached several marginalized communities such as those of Chepang and Tamang, in remote villages. It also helped the socially excluded and poor communities like Dalits and Muslims.

The organization is planning to reach another 11 thousand families with microcredit initiatives and training programs, especially in agriculture and rural businesses, initiating the phase of the reconstruction of the social and economic fabric. Consideration is being given to a program of grants and small loans for the rebuilding of homes and to restore damaged schools and hospitals, while the commitment of religious congregations continues, such as the Sisters of Jesus and the Jesuits of Nepal Jesuit Social Institute.

Despite these efforts, assistance is still necessary, says the UN, because almost 3 million people still depend on humanitarian aid, and among these, one million are children.

But, alongside emergency aid, long-term programs are needed. The campaign “Jubilee Network,” which unites 75 organizations and four religious communities around the world, has asked the International Monetary Fund (IMF) to remit the foreign debt of Nepal, but the IMF has given a negative answer.
The proposal intended to use the special trust fund from the IMF designed to help poor countries affected by natural disasters and used in the past to remit almost hundred million dollars of debt in West African nations hit by the Ebola virus.

Nepal is one of the 38 low-income countries that are potential recipients of aid from the new fund. But, according to established criteria, to be able to receive benefits a country must meet two conditions: the disaster must hit at least a third of the population of the country (and in the case of Nepal this has been verified); and cause ‘serious’ harm to the economy. This, according to the IMF, has not happened, even though estimates speak of more than 5 billion dollars in damage, about a third of the total economy of the country.

The IMF, the World Bank and the Asian Development Bank hold approximately 3 billion dollars in foreign debt from Nepal. Even partial debt forgiveness would permit the allocation of a greater flow of resources for reconstruction and recovery after the quake.

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